AUGUST 28, 2000

CIRCULAR NO. 7/00

TO MEMBERS OF THE ASSOCIATION

Dear Member:

MARKET DEVELOPMENTS: AMERICAN CLUB ANNOUNCES COOPERATIVE RELATIONSHIP WITH AMERICAN HULL INSURANCE SYNDICATE

As some of you may already be aware through announcements in the press, the Club has recently signed a Memorandum of Understanding with the American Hull Insurance Syndicate establishing a cooperative relationship between the two.

The press release informing the media of this development is attached for your ready reference. It is hoped that its contents are self-explanatory, but if anyone has any questions, the Managers will be pleased to respond.

Yours faithfully,

Joseph E.M. Hughes, Chairman & CEO
Shipowners Claims Bureau, Inc., Managers for
THE AMERICAN CLUB